bonds issued by the U.S. government are considered to be at defualt risk
Added by Rosario E.
Step 1
S. government are considered to have very low default risk because the U.S. government has the ability to print money to pay off its debts. This means that the likelihood of the U.S. government defaulting on its bond payments is extremely low. Show more…
Show all steps
Your feedback will help us improve your experience
Adi S and 81 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
What quality of US government bonds causes investors to buy them when market volatility rises? a) US government bonds are denominated in dollars b) US government bonds are stored in bank vaults c) US government bonds are underwritten by global taxpayers d) US government bonds are considered low risk
Adi S.
Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed rate of interest?
Juan N.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD